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Spirit creates new wholesale arm with VPD Group acquisition

Spirit creates new wholesale arm with VPD Group acquisition

Forks out $14 million for holding company VPD Group, which includes IBM partner Now IT Solutions

Sol Lukatsky (Spirit Telecom)

Sol Lukatsky (Spirit Telecom)

Credit: Spirit Telecom

Spirit Telecom is to create a new channel-focused division through the purchase of Queensland IT and communications company VPD Group.

The acquisition principally includes the IT service provider and IBM partner Now IT Solutions, via which it supplies a number of cloud services.

Now IT Solutions also supplies services in voice, printing and web hosting, counting Mitel and Kyocera also among its vendors.

The purchase also includes the companies Live Call and Voice Print and Data Australia, collectively, along with Now IT, bringing $15 million in revenue this year.

Following the companies’ integration, Spirit will create a new wholesale business named Spirit Partners, which will focus on distributing its range of products via channel partners across Australia.

As part of the deal, VPD Group co-founders Jason Wade and Luke Briggs will join Spirit as chief technology officer and chief sales officer for wholesale respectively.

“This is a game changer for Spirit and through the acquisition of VPD Group, Spirit will build and strengthen its cloud, security, data and  managed  IT services capabilities while providing entry into expanded geographies in Queensland and NSW for verticals such as mining, industrials and aged care,” said Spirit’s managing director Sol Lukatsky. 

According to VPD, the company already has a portfolio of customers  and “highly  engaged channel partners”, which will complement Spirit’s own recent efforts to expand its partner network. 

VPD’s products for small-to-medium-sized businesses will be bundled into Spirit X Digital’s sales platform. Completion is subject to closing conditions and is expected to occur on 1 July 2020.

Earlier this year, Spirit acquired managed IT services business Cloud Business Technology (Cloud BT) in an ongoing strategy to ramp up its offerings in this space.

Spirit made its first major foray into managed services with the $2.6-million purchase of Arinda IT and then Phoenix Austec for $1.6 million last year.


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